Biz Affairs & Labor Passes Bill to Help Coloradans Build Credit

DENVER, CO– The House Business Affairs and Labor Committee today passed bipartisan legislation sponsored by Representatives Naquetta Ricks and Mary Bradfield that would help Coloradans build up their credit scores by opting into a pilot program to report their rent payments to credit reporting agencies. The vote was 8-5.

“Building a credit history is essential for applying for a home loan, car loan, credit card, or nearly any other financial product that requires repayment,” said Rep. Naquetta Ricks, D-Aurora. “Too many Coloradans don’t have sufficient credit history, even though they pay their bills or rent on time. This bill would establish a pilot program to allow some Coloradans to use their rent payment history to build credit, creating a new way for consumers to raise their credit scores.”

Insufficient credit history can be a significant barrier for Coloradans seeking to lease a home or access other types of capital. While there are many ways consumers can build a credit history and improve their credit score, common obligations like rent payments are not often reported to credit agencies and thus do not help a consumer’s credit score when they are regularly paid on-time. HB21-1134 helps Coloradans who pay their rent on-time improve their credit scores by establishing a pilot program that would allow some Coloradans to opt into reporting payments to credit reporting agencies. 

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